Morgan Stanley sees Talen-Amazon power deal's final decision in second-half of Oct
** Morgan Stanley Research says Federal Energy Regulatory Commission's (FERC) decision on Talen Energy TLN.O powering Amazon's AMZN.O data center to be reached by mid-October
** Talen announced in March it had entered into an agreement to sell electricity and a data center campus located at its Pennsylvania nuclear power plant to Amazon Web Services
** Utilities like American Electric Power AEP.O and Exelon EXC.O asked FERC to hold a hearing to scrutinize the agreement, saying it could cost customers $140 mln per year
** On Aug. 2 FERC issued to TLN, PJM Interconnection and PPL PPL.N a deficiency letter asking for more information on the deal
** Morgan Stanley Research analysts highlight that "FERC didn't take issue with any of the provisions, and didn't bringup the many protests submitted by EXC/AEP"
** "With the steps taken by FERC we are feeling more comfortable that the regulatory risk is manageable and future deals could move forward soon" - Morgan Stanley Research analysts
** "We also think it's possible other deals don't wait for the outcome of this proceeding and get announced in the interim, particularly given rising power prices and capacity prices even before data centers are coming to the region at scale"
Reporting by Seher Dareen in Bengaluru
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